India's Tata group is to invest $2bn (£1.1bn) in Bangladesh, the country's single largest foreign investment ever.
Bangladesh has agreed to supply gas to the project
Tata is to build a power plant, steel unit and fertiliser factory after Bangladesh guaranteed a supply of gas.
The Bangladeshi government is wooing foreign investors in an attempt to reduce its reliance on foreign aid.
The project, which has been agreed in principle, will create "huge" job opportunities, State Minister of Power Iqbal Hassan Mahmood said.
Bangladesh has 15.33 trillion cubic feet of proven gas reserves.
"They want a guarantee for smooth gas supply for at least 20 years and we have agreed, but many things still have to be addressed, such as the gas price," State Minister for Energy and Mineral Resources AKM Mosharraf Hossain told the Reuters news agency.
India's Tata is the major shareholder in several large Indian blue chip companies, including truck maker Tata Motors and steel maker Tisco.
The Bangladeshi Government is intent on attracting further big foreign-investment deals: plans for a sweeping promotional campaign are currently being drawn up.